Are you or someone you know currently having trouble making your mortgage payment? We may be able to help you avoid foreclosure, or worse. We specialize in assisting homeowners avoid foreclosure by sellling their home in a "Short Sale". Chris Highland has a nationally recognized certification, CDPE (Certified Distressed Property Expert), and is trained to help homeowners navigate the difficult waters of the Short Sale transaction.
The Highland Group with eXp Realty
5457 Twin Knolls Road
Columbia, MD 21054
What is a Distressed Property? 1. For a number of possible reasons, a property that is or will soon be in some stage of the foreclosure process. 2. A property owned by someone who is experiencing a period of financial instability. 3. A property on which the mortgages total an amount higher than the current value and an owner must sell.
What is a short sale? A homeowner is 'short' when he owes an amount on his property that, when combined with closing costs and commission, is higher than the current market value. A short sale occurs when a negotiation is entered into with the homeowner's mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is "sold short". A short sale is a process that takes specific paperwork, the short sale package, and it must be done accurately. This is where the training and experience of the agent make all the difference as to whether your home gets sold. There is no "short sale magic", just hard work and knowledge.
Why would a lender accept a short sale? One of the most common misconceptions that homeowners have is that their lender is lying in wait to seize their house. Nothing could be further from the truth. Banks are in the business of lending money, not the real estate business, and they don't want to own your house. The fact is a foreclosure has far-reaching financial and regulatory consequences that most people are not aware of. A foreclosure involves months of utilities, maintenance, interest loss, taxes, insurances, staffing costs...and not least of all legal fees.
I've heard short sales are complicated and can take months, but still not work out? Short sales are different than traditional sales. There is a process that must be followed. The reason so many don't work out is that so few realtors are trained to handle short sales correctly. Banks, as well, are overwhelmed with the sheer number of distressed properties; they are understaffed and ill-prepared. In Maryland, in 2007 only 1 in 31 short sales actually made it to closing. As the number of short sales has grown over the last few years, banks are gradually seeing the benefit of short sales over foreclosures, and are becoming more cooperative with the short sale process. Recent legislation to create standards for the short sale process has helped enormously to speed up the transaction. Currently 9 in 10 short sales are successful.
Why is a short sale an advantage to me as a distressed property owner? Going through the foreclosure process is quite possibly the most devastating financial and emotional process a homeowner or family can go through. Credit scores can be lowered by 300+ points and foreclosure is the most devastating credit issue you can have in relation to future credit availability. If you successfully sell your house in a short sale, the deduction on your credit score is significantly less, and can be repaired.
What a short sale is not: A short sale is a way to avoid foreclosure, not a way to get out of a mortgage. A seller must demonstrate a valid financial hardship for why he or she cannot pay their mortgage. There are very specific requirements.
If you think you might be in danger of foreclosure, call or email us, we can help.